Citigroup settles subprime mortgage case for $7B - Los Angeles News | FOX 11 LA KTTV

Citigroup settles subprime mortgage case for $7B

Posted: Updated:

WASHINGTON (AP) -- Citigroup will pay roughly $7 billion to settle an investigation into risky subprime mortgages, the type that helped fuel the financial crisis.

The agreement announced Monday comes weeks after talks between the two sides broke down, prompting the Justice Department to warn that it would sue one of the nation's biggest banks.

The settlement stems from the sale of securities made up of subprime mortgages which fueled the boom and bust that triggered the Great Recession in 2007.

Citigroup, among other banks, downplayed the risks of subprime mortgages when packaging them selling them to mutual funds, investment trusts, pensions, as well as other banks and investors.

J.P. Morgan is the only other major U.S. bank to settle so far, though Bank of America is reportedly in talks to do so.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • Manhattan NewsManhattan NewsMore>>

  • The Big Idea

    Making New York City more energy efficient

    Making New York City more energy efficient

    Friday, July 25 2014 6:45 AM EDT2014-07-25 10:45:43 GMT
    More than half the population of New York City rides public transportation to work. No other metropolis in this country even approaches that percentage or the MTA's total number of riders. For that reason, New York likely ranks as the most energy-efficient city in the nation. But what would it take to make the city even more energy-efficient or even self-sufficient?
    More than half the population of New York City rides public transportation to work. No other metropolis in this country even approaches that percentage or the MTA's total number of riders. For that reason, New York likely ranks as the most energy-efficient city in the nation. But what would it take to make the city even more energy-efficient or even self-sufficient?
  • Dunkin' Donuts cashiers will try to 'upsell' you in the afternoon

    Dunkin' Donuts cashiers will try to 'upsell' you in the afternoon

    Friday, July 25 2014 5:54 AM EDT2014-07-25 09:54:31 GMT
    If an iced coffee from Dunkin' Donuts is part of your afternoon routine, expect a nudge to buy a cookie or doughnut you didn't plan on. Dunkin' Brands CEO Nigel Travis said in a phone interview Thursday that the company is pushing to get its cashiers to "upsell" to afternoon customers. It's part of an effort to increase sales after stores have emptied out after the morning rush.
    If an iced coffee from Dunkin' Donuts is part of your afternoon routine, expect a nudge to buy a cookie or doughnut you didn't plan on. Dunkin' Brands CEO Nigel Travis said in a phone interview Thursday that the company is pushing to get its cashiers to "upsell" to afternoon customers. It's part of an effort to increase sales after stores have emptied out after the morning rush.
  • Dwayne Johnson hosts 'Hercules' screening for NYC children

    Dwayne Johnson hosts 'Hercules' screening for NYC children

    Thursday, July 24 2014 10:30 PM EDT2014-07-25 02:30:48 GMT
    When he's not slaying three-headed beasts with his olive-wood club, Hercules carves out time for the little people. Dwayne "The Rock" Johnson treated fans from the Harlem Boys and Girls Club and Big Brothers Big Sisters NYC to an advance screening of his new film. I caught up with the larger-than-life action hero after the big surprise.
    When he's not slaying three-headed beasts with his olive-wood club, Hercules carves out time for the little people. Dwayne "The Rock" Johnson treated fans from the Harlem Boys and Girls Club and Big Brothers Big Sisters NYC to an advance screening of his new film. I caught up with the larger-than-life action hero after the big surprise.
Powered by WorldNow

KTTV FOX 11
1999 S. Bundy Dr.
Los Angeles CA 90025

Main: (310) 584-2000
News Tips? (310) 584-2025

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices